A 20% tariff on wine sounds simple.

But in the U.S., wine moves through a system designed to multiply cost:

Producer → Importer → Distributor → Retailer → You

Each layer adds its margin.

So when the base price goes up, the whole chain compounds it.

Here’s how imported wine moves through the system:

→ Producer sells the wine for $10

→ Importer adds 35% → $13.50

→ Distributor adds 30% → $17.55

→ Retailer adds 40% → $24.57

That’s how a $10 bottle becomes $25—before any tariff.

That’s just the system.

Now let’s add a 20% tariff to that $10 bottle:

→ Producer + tariff = $12

→ Importer markup → $16.20

→ Distributor markup → $21.06

→ Retailer markup → $29.48

The price didn’t rise by just $2.

It rose almost $5—because each step adds margin to a higher base.

That’s the multiplier effect.

This system what put in place after Prohibition.

The government banned direct sales to control alcohol.

They split the chain into tiers to make it easier to tax and track.

It’s not efficient. But it is law.

And that’s just the sales chain.

Even American wine relies on foreign parts.

Most bottles come from China.

Most corks come from Portugal.

Many barrels come from France.

So tariffs raise production costs here too.

A $10 bottle doesn’t become $30 because of a tariff.

It becomes $30 because of the system.

Tariffs just amplify the effect.

If this helped explain wine pricing in America,

please like or repost to help spread the word.

Tomorrow: how we ended up relying on foreign glass.